SEC Sues Bank of America Over Merrill Lynch Bonus Payments
According the the complaint (shown below), BOA sent shareholders proxy materials about the proposed merger telling them that it wouldn't pay Merrill execs their traditional year-end performance bonuses before closing its deal to aquire the investment house without first getting consent.
A prior undisclosed agreement allowed Merrill executives up to be paid up to $5.8 billion in bonuses for 2008, according to the S.E.C., but BOA's proxy statement disclosures were rendered materially false and misleading by failing to disclose this information.
You can read the SEC's complaint here:
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.